Bilyonaryo Manny V. Pangilinan-led PXP Energy Corp. will be paid $9.6 million to settle a dispute with its partner Karoon Gas Australia over their oil exploration project in Peru.
The amount is less than a tenth of the $100 million PXP originally sought from its Australian partner allegedly due to breach of obligations, including drilling a second well in Peru Block Z-38.
Pitkin Petroleum Ltd. (PPL), a 53.4 percent-owned subsidiary of PXP, has a 25% participating interest in Peru Block Z-38.
Under the deed of settlement, Karoon Gas has agreed to pay $9.6 million in cash to PPL in full and final settlement of all claims by Pitkin Peru and its associates in connection with Block Z-38.
The deed will be effective upon the receipt of the settlement sum by PPL within 3 business days upon signing of the deed.
Peru Block Z-38 was placed on force majeure from March 16 to November 27, 2020 due to the lockdowns imposed to curb the spread of COVID-19.